RISKS AND OPPORTUNITIES FOR DOING BUSINESS IN CHINA

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RISKS AND OPPORTUNITIES FOR DOING BUSINESS IN CHINA

RISKS AND OPPORTUNITIES FOR DOING BUSINESS IN CHINA

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Every other day, there is a new investor going to China. “Made in China” brand is common in almost every country in the world except for the few countries that have stringent quality rules that exclude “Made in China” products which are stereotyped for low quality.  However, China is a strong emerging market and government policies have attracted continued flow of foreign direct investment in the country.

RISKS AND OPPORTUNITIES FOR DOING BUSINESS IN CHINA

Since the second half of the 20th century, China has made great strides in building its economy. From the era of communist Xiao Deng Peng, China opened its economy to foreign directs investment after year of closed economy.  In the early years of 1980s, Chinese government undertook various reforms that were geared towards attracting foreign investors to the emerging market.  The FDI consequently flowed into China for two consecutive decades investing more than $250 billion (Shanthappa 2007, p. 41).